Overall, the reports from WalletHub and the Federal Reserve Bank of New York show an increase in credit card debt in the third quarter.
12/12/2018 9:00
Consumers’ outstanding credit card debt continues to rise, countering significant repayment efforts made earlier this year, according to the latest “Credit Card Debt Study: Trends and Insights” from WalletHub.
“Outstanding credit card debt is at the second-highest point since the end of 2008, after reaching an all-time record high for a third quarter in Q3 2018,” Alina Comoreanu, senior researcher for WalletHub, writes in the report.
Credit card debt in the third quarter reached $974.2 billion from $966.5 billion in the second quarter and $953.7 billion in the first quarter.
Consumers repaid $40.8 billion in credit card debt in the first quarter, but accumulated nearly $38 billion in new debt in the second and third quarters, according to the report.
Additionally, according to Comoreanu, the year started at more than $1 trillion in credit card debt after consumers added $87.3 billion in debt in 2017.
WalletHub also projects credit card debt will increase by another $70 billion by the end of the year.
Looking at the average credit card debt per household, it increased 2 percent from $8,107 in the third quarter 2017 to $8,284 in the third quarter 2018. The third quarter balance is approximately $177 from being “unsustainable” for consumers, according to WalletHub.
Read the complete Credit Card Debt Study: Trends and Insights from WalletHub.
The Federal Reserve Bank of New York also recently released its quarterly report on household debt, which shows total debt increased for the 17th consecutive quarter.
Household debt increased $219 billion to $13.51 trillion in the third quarter 2018, according to a news release from the Fed.
Key findings from the Fed’s report include:
- Outstanding student loan debt increased by $37 billion in the third quarter
- Credit card balances increased by $15 billion to $844 billion
- Credit inquiries within the last six months—indicating consumer credit demand—increased slightly, but remain among the lowest numbers recorded in the history of the Fed’s report.
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